Tokyo-based Metaplanet is preparing for a large-scale capital increase to both strengthen its balance sheet and accelerate Bitcoin accumulation. The company aims to raise up to 21 billion yen (approximately $137 million) in total through a new share issuance and share purchase rights (warrants) via a third-party allocation method. A significant portion of the funds will be used for partial debt repayment, while the remainder will be used for new Bitcoin purchases and general institutional needs.
Metaplanet takes action again for Bitcoin
As part of the planned transaction, Metaplanet will issue 24.53 million new common shares at a price of 499 yen per share. This price represents a premium of approximately 5 percent compared to the previous closing price. In the first phase, approximately 12.24 billion yen in cash inflow is expected from this sale. However, the share's intraday performance was volatile, reflecting short-term dilution concerns; shares closed the day at 456 yen, down approximately 4 percent.
The fact that the capital increase is structured as a third-party allocation is noteworthy. This method means that instead of selling shares on the public market, they are directly placed with a specific and limited group of investors. Company management aims to create a more controlled investor profile and limit the risk of volatility. Each new share issued is accompanied by a right to purchase 0.65 shares. This structure corresponds to a total of 15.94 million potential new shares, providing 65% warrant coverage. The exercise price for these rights is fixed at 547 yen, and the exercise period is limited to one year. If all rights are exercised, Metaplanet could receive an additional 8.9 billion yen. The fixed exercise price offers a relatively more predictable scenario for existing shareholders, as it limits variable dilution compared to a moving strike structure. The company plans to use 5.2 billion yen of the initial funds to partially repay existing debts. According to Metaplanet's publicly available data, the company has approximately $280 million in debt on its balance sheet. Management emphasizes that reducing debt will lower interest expenses, increasing long-term financial flexibility.
The remaining funds are expected to be primarily allocated to Bitcoin purchases. Metaplanet currently holds the fourth-largest Bitcoin treasury among publicly traded companies, with a reserve of 35,102 BTC. This strategy positions the company as a "Bitcoin treasury," offering digital asset exposure through its balance sheet, rather than a traditional investment holding company.
The recent adoption of similar strategies by some publicly traded companies globally makes Metaplanet's move part of a broader trend. The company argues that it has charted a balanced roadmap aimed at both gradually reducing debt and benefiting from the long-term potential of Bitcoin's price. While dilution discussions remain on the agenda in the short term, management believes this step will create shareholder value in the medium and long term.
